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STRUGGLING fashion retailer Monsoon Accessorize has warned that it faces closing stores for good within a week if landlords don’t offer to waive rent.
The chain closed all 220 stores on March 26 when the Government ordered all non-essential shops to temporarily shut to stop the spread of coronavirus.
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But now it is fighting to decide what stores can be saved, according to The Telegraph, as clothes shops have been given the go-ahead to reopen from mid-June.
The paper reports that Monsoon’s founder and owner Peter Simon intends to buy back the business if he has to put it into administration, but a source said that it is likely to return with fewer branches.
Landlords have been given until next Monday to let the firm know if they intend to demand payment if administrators are formally appointed.
Keys will immediately be handed back to landlords if they choose to do this.
Businesses in turmoil in 2019 and 2020
MONSOON Accessorize is the latest in a long list of businesses to be facing trouble.
In 2019 and so far in 2020 we’ve seen:
- Aldo collapse into administration
- Jamie Oliver’s “Jamie’s Italian“chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- Struggling shoe shop Office has said it “could close shops” as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it “brings in emergency advisers”
- Hairdressing chain Supercutswent into administration in October 2019 putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November 2019 after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Bealeswent into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February 2020
- Mobile phone retailer Carphone Warehousesaid in March 2020 that it’ll close all 531 standalone stores in April
- Vintage furnishing and fashion firm Cath Kidston said it was closing all 60 high street stores in March 2020
- Fashion store Animal said in April 2020 it was closing all 21 of its UK stores
- Department store chain Debenhams fell into administration for the second time in April 2020
- P&O Ferries said in May 2020 that it was looking at making 1,100 workers redundant
- TUI warned in May 2020 that 8,000 jobs could be cut due to the ongoing coronavirus crisis
- British Airways said in May 2020 that it still plans on pressing ahead with 12,000 job cuts
This is a far from ideal for commercial property owners who will have to try and fill the space to cover bills at a time when very few businesses are looking for premises due to an uncertain future post COVID-19 lockdown.
The chain, which specialises in fashion and jewellery, employs around 3,500 and wasn’t reported to be struggling before the pandemic hit.
Even though it has continued to operate online during lockdown, the sales are not said to make up for the losses felt in stores.
The chain is said to be working with financial advisors FRP.
The retailer did go through a restructuring less than a year ago which saw Mr Simon inject £12million from his own pocket into the business.
It successfully fought off falling into administration, managing to cut rents for 135 shops although 40 had to be permanently closed.
Many high street retailers has suffering due to the Government’s pandemic measures.
Shoe chain Aldo collapsed into administration last week, shortly after Debenhams, Cath Kidston, Laura Ashley, Oasis and Warehouse who’ve also been forced to shut their doors since the virus hit the UK.
Today, we reported how restaurant chain Frankie & Benny’s is to shut a “large number” of stores for good even after lockdown is lifted.
Italian chain Carluccio’s fell into administration in March, putting 100 branches and 2,000 employees’ jobs at risk.
A partial sale has saved 30 branches but axed 1,000 jobs in the process of rescuing the brand.
The Telegraph reports that Monsoon Accessorize did not want to comment.
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